While the breadbasket of the U.S. endures its worst drought in more than five decades, parched weather also is impacting the fields of Russia and Australia. The northern plains of the U.S. are not forecast to see much rain during the next 10-day period, which will be damaging to production in the globe's largest shipper of the agricultural commodity.
The next 90-day period in Australia will be particularly dry and this year's harvest in Russia will be more than 4 percent lower than that of last year.
"Look at what's going on in the U.S. and look at what's going on in Australia and Russia, and people are looking at drawing down world carryout," risk management consultant Mike O'Dea with INTL FCStone in Missouri told Bloomberg. "There are a lot of people talking up wheat right now."
At 9:32 a.m. on Friday, wheat futures slipped 0.03 percent, a 0.0025 drop to $9.3475 per bushel.
Reuters reports the past 35 days have seen wheat futures advance roughly 50 percent.
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